Question: Asset A B C Return 8% 13% 5% Standard Deviation 12% 20% 0% Cov(A,B) 72 There are two types of investors in the market. Investor

Asset	A	B	C
Return	8%	13%	5%
Standard Deviation	12%	20%	0%
Cov(A,B)	72

There are two types of investors in the market.

Investor X: has a Risk aversion level of 0.5

Investor Y: has a Risk aversion level of 4.5

For both investors find the respective weights of assets in (1) optimal risky portfolio and the (2) optimal complete portfolio given the following market situations:

Borrowing and lending is allowed at risk-free rate

For each part make graphs showing: P, C, efficient frontier, CAL, utility curve, r(f), r(b), and minimum variance portfolio.

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